bank sent letter asking to reaffirm or mod? Nationstar

[StEt0417]

We stopped making our mortgage payments in 2010. Oct. 2011 we filed CH.7. We did not reaffirm our 1st or 2nd mrtg. We moved out of the house then back in a year later. Turns out there was a mistake done due to a tax refund so we have been stuck in BK for a year now. We just officially closed the case. Our loan was originally through Bank of America but recently got a letter stating NationStar has taken over the loan and now we are getting letters almost everyday from them. Im worried this new mortgage company will speed up the process of foreclosure. Now our lives are different and we would like to keep the house. Nationstar sent us a letter saying if we want to reaffirm we have x amount of days to do so or if we are interested in loss mitigation opportunities to contact the. m If we reaffirm does that mean we are just reopening the 1st mortgage? Do we still have to be responsible for the 2nd? I wonder how long they will allow us this opportunity? We would like to stay mortgage free at least until we pay off our trustee. Has anyone done a mod or reaffirmed after CH.7?

[despritfreya]

You cannot reaffirm at this late date. That had to be done before you got your Discharge. Trying to reaffirm (stupid) would require you to seek the "temporary" revocation of your discharge (also stupid).

If you wish to try to modify the loan through HAMP or some other such program you are free to explore doing so. That is between you and the lender/servicer. A loan modification is not a reaffirmation of the debt. The debt is still discharged.

As to your second, unless the second has agreed to release its recorded lien there is always a chance that it will foreclose unless you "work it out" with the lender. An attempt to foreclose may depend upon the value of the property and whether or not there is any equity in it after consideration of the first mortgage. Property values are increasing and the rate of such increase depends upon what State you are in.

Des.

[btbeme]

Lots of mortgage mods after BK. But the biggest issue will be whether you have equity in the house, how much the 1st and 2nd mortgage add up to, and whether they are with the same bank.

In most cases, the first mortgage cannot modify unless the second mortgage gets satisfied. If you are upside down on the house as a whole - including the second - you can start negotiations with the second mortgage holder to see if they will settle for a lesser amount, or possibly resubordinate for the first mortgage. If the 1st and 2nd are with the same bank, it is sometimes possible for the two loans to become one as part of a loan modification.

But the bottom line is that if you plan to stay in the house, you must pay! Until you are current (via paying up or via a mod that gets you even with the world), foreclosure is a real possibility.

[paulsk]

We stopped making our mortgage payments in 2010. Oct. 2011 we filed CH.7. We did not reaffirm our 1st or 2nd mrtg. We moved out of the house then back in a year later. Turns out there was a mistake done due to a tax refund so we have been stuck in BK for a year now. We just officially closed the case. Our loan was originally through Bank of America but recently got a letter stating NationStar has taken over the loan and now we are getting letters almost everyday from them. Im worried this new mortgage company will speed up the process of foreclosure. Now our lives are different and we would like to keep the house. Nationstar sent us a letter saying if we want to reaffirm we have x amount of days to do so or if we are interested in loss mitigation opportunities to contact the. m If we reaffirm does that mean we are just reopening the 1st mortgage? Do we still have to be responsible for the 2nd? I wonder how long they will allow us this opportunity? We would like to stay mortgage free at least until we pay off our trustee. Has anyone done a mod or reaffirmed after CH.7?

I am in the same situation as you are now, Chapter 7 in March 2013 and in the 60 day club waiting for discharge. NationStar bought my loan from BOA and they sent me reaffirmation letters twice in one month. I have thrown it out without even reading, because reaffirming is a bad idea if you cannot make payments in future. You already have some good advice from others here, i just wanted to share my story. Good luck!